August 2, 2017
The Summer/Fall 2017 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows that broad segments of the overall CRE market will be slowing down in the coming years. The report notes though unemployment has dropped and income and spending are increasing, there is an ebbing of market optimism about the future from developers, which should lead to a slowing of development.
Sentiment about the next three years in industrial markets has abated somewhat, but only because this has been the hottest market, and building-gone-wild has prevailed throughout the state. E-commerce will continue to drive a hot market for warehouse space, just not quite as searing hot as before.
Allen Matkins’ John Tipton says, “In the Northern California industrial markets, after a really incredibly strong run, the conditions are softening. People are remaining very optimistic. You’ve just seen such a boom in the supply retailing through the industrial building chain, such as Amazon taking over world, that those markets have really remained very strong.”
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